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[The following information applies to the questions displayed below.] Hart Company made 3,400 shelves using 22,400 pounds of wood costing $315,840. The company's direct materials
[The following information applies to the questions displayed below.]
Hart Company made 3,400 shelves using 22,400 pounds of wood costing $315,840. The company's direct materials standards for one shelf are 8 pounds of wood at $14.00 per pound.
AQ = Actual Quantity
SQ = Standard Quantity
AP = Actual Price
SP = Standard Price
- Compute the direct materials price and quantity variances along with the total direct materials variance.
- Hart applies management by exception by investigating direct materials variances of more than 5% of actual direct materials costs. Which direct materials variances will Hart investigate further?
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